Originally Posted by meepwn
**** this ****. Very good post, Do-it-right.
The cause of this is the over-hyper regulation and taxation of the market. Hold on, I am not a crazy libertarian, I'll explain.
I've been looking at the requirements for a european gaming license. Most (all maybe?) euro rooms have a lisence either from Malta or Gibraltar. With the exception, of course, of closed markets (France, Italy, Spain) which get their licenses from their own govenrnment. Some other countries are also looking to regulate and block the traffic, take for example my country, Bulgaria, has recently passed a law, that is listing all the rooms into either "approved" or "un-approved" list. As soon as ONE poker room gets a license from our Gambling Commitee, all other rooms will be authomatically moved in the "un-approved" list and blocked. The law grants power to the executive organs to manually control the traffic via ISP censure.
Now, what it takes to get a gambling licence? For online poker, or remote gambling, to even be considered by the Gambling Commitee, you have to fork out 40k BGN (20k EUR) in legal fees, the whole process will probably take close to a 100k BGN (50k EUR). Both the Gibraltar and Maltian licenses are even more expensive. Even MORE if you want a sports betting site, or online casino. If you want all three, you don't pay the highest fee, you pay all the fees.
This is just to be considered a viable candidate for a lisence. There is no refunds if you are not approved.
Furthermore, you have to be able to prove you have at least 600k BGN in investments in your business, and 300k money reserves. For poker; close to double that if you want casino/sports betting.
****. I mean, 600k? For this money, I could not RENT an office, I could buy the whole ****ing building and fill it with computers, provided I'm not too picky.
And 300k just sitting there for no good reason? I mean, I get the idea, but any self respecting business will keep the player funds separated from the operating funds anyway. Holy ****, this is effectively just burning 300k.
And not to forget, all these money are just to be considered. Where are they going? Funding the commitee, with 5 members... And how long does it take to be considered? 1 month, with a clause that if the decision is hard, they will take 2 months.
....Oh, and not forget, they require 15% of the winnings just going simply to them. Just like that.
How can you try and make business like that? I am 100% that with 100k BGN (50k EUR) I can successfully start an operating room, give better promotions than any other room on the market, put more money towards improving my software that most of the rooms, and still make up my investment within a year. There are several banks that may give 100k loans, but a million? Nah. Nobody. Even with a perfect business plan, no. There can be no free market if there are no competitors.
I'm not against regulation, but this is not regulation for the sake of our protection and well being, just think about Purple Lounge for example. What good did the LGA did then? Nothing. This is regulation purely on the basis of "We are the government, you have no choise, we will take your ****ing money because we can".